Tawau Resort Used as Front for Online Scam Syndicate — 80 Arrested

A resort in Tawau, Sabah, was raided on 7 April 2026 at 9:20 PM, exposing an online scam syndicate that used the premises as its operation centre, training ground, and accommodation. The operation by Sabah's Commercial Crime Investigation Department (JSJK) resulted in 80 arrests. Sabah Police Commissioner Datuk Jauteh Dikun confirmed the suspects had posed as tourists and had been operating from the resort for approximately three months.

Of the 80 arrested, 78 were Chinese nationals, one was from Myanmar, and one from Laos. They ranged in age from 17 to 46, including four women. The syndicate was running a Chinese police impersonation and insurance fraud scheme, using phone calls and video calls to target victims by impersonating Chinese police officers and convincing them of fabricated insurance-related offences.

The Tawau syndicate operated a structured impersonation fraud targeting Chinese Americans. Workers used written scripts to impersonate Chinese police officers during phone and video calls, convincing victims of fake insurance offences and extracting payments.

Police seized mobile phones, computers, written scripts, modems, passports, banners, and Chinese government police uniforms from the premises. The presence of actual police uniforms demonstrates the level of preparation these syndicates invest in making their impersonations convincing.

All 80 suspects were brought before the Tawau Magistrate's Court and charged under Section 120B (criminal conspiracy) and Section 420 (cheating) of the Penal Code. Twenty-three also face charges under the Immigration Act 1959/63 for entering or remaining without valid passes. All pleaded not guilty. Fifty-seven were granted bail of RM3,500 with two local sureties, while the 23 facing immigration charges were denied bail and detained at Tawau Prison. The next hearing is scheduled for 25 May 2026.

How common are scam compounds in Malaysia?

Malaysian police have conducted multiple raids on scam operations across the country in recent years, including in Sabah, Melaka, and Johor. The 80 arrests in Tawau represent one of the larger operations uncovered recently.

How do I report a suspected scam operation in Malaysia?

Call 997 (NSRC), lodge a police report, report via SemakMule at semakmule.rmp.gov.my. You can also contact local police directly if you observe suspicious activity at a property.